Welcome to this third and final video on Advanced Inventory Replenishment. In this video we shall see how it provides the buyer with more information when creating purchase orders using Dynamic GP’s purchase order generator.
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As we have seen Advanced Inventory management allows distributors to:
• Set stock policy by time rather than using fixed safety and reorder quantities, which can be difficult up keep up to date in a fast moving commercial environment.
• It allows them to Understand demand, including lost sales and exceptional demand and take advantage of ABC analysis based on bin trips, frequency of picking
• It will suggest the best forecasting method for each item and then automatically calculate the safety stock, re-order level, and order up to level
• And lastly it provides information and decision support to Replenishment function
Let's see how it works: Transactions > Purchasing > PO Generator
This is the Purchase order generator screen, which is set to look at one site and one specific vendor. Select Site FANDB and Vendor FOODV001 I have selected Include Zero Qty Required. This enables us to see all the items that we purchase from this vendor even if they are not recommended for purchase today. I have also selected Use Line Point rather than order point as our ordering threshold. When we click on the Suggest Purchase Order Button.
Three windows will appear.
• Suggested Purchase order preview
• Vendor Totals
• Suggested PO Line Demand
Let’s look at them one by one.
Suggested Purchase Order preview is an enhanced view of the GP PO generator. The first difference is that we are seeing many items with a zero quantity. This is because we chose to include zero qty option on the selection screen New columns show us our estimated weekly demand, minimum weeks’ stock, the number of weeks stock we currently have and our current available inventory. The letter V indicates that the price has been drawn from a vendor contract while the F tells us there is a Future Price already set up. – i.e. an imminent price. If we highlight a line – pick Z-100 then the arrow next to unit cost in header will allow us to view the price information. In this example we have negotiated a reduced price for the month of May. For the purposes of this demonstration we will concentrate on suggested items only so select the Marked Radio Button. You should now see three items.
Vendor Totals This allows us to monitor both spend and order size against user set thresholds. When we are monitoring order size the measure used may not be the same as the ordering unit. E.g. it is possible to order in a mix of cases, eaches but measure the overall order in terms of palletization or weight. Note the add weekly demand button. This means that the buyer can add a week’s demand at a time across all items ordered thus ensuring that if the order has to be increased it remains appropriately “balanced”. Order size monitoring enables the buyer to manage container fill, hit freight thresholds.
The Purchase Order Line Demand screen provides us with additional enquiries to better understand the item, its demand, pricing and suggested order details. We can look at the demands itself, pick a period, drill; down and see the individual invoice lines. We can click on the Available to Promise screen and view outstanding allocations. Item stock gives us the complete chronological view of all transactions against an item. Item Enquiry will provide us with a gateway other enquiry screens including item. Resource planning screen Residual inventory is the amount of inventory still available for sales at the point that a receipt was made. This is a useful indication as to how close in practice this items has ever come to being stocked out in the past For POP inquiry, restrict by requested date. Then, select re-display POP inquiry allows us to view current and historic purchase orders. The vendor price screen we have already seen. While the True Cost enquiry select Z-101 and UOM of CASE10 will show the supplier cost plus landed costs less any retrospective discount accrued via the retrospective discount module.
So to summarize Use Advanced Inventory replenishment to:
• Set Your Stock Policies
• Understand your Demand and generate of order point and order up to level values based on industry forecasting formula
• Monitor & review
• Use an Enhanced Purchase order generator to help you Order the Right Products, at the Right Price, at the Right Time
Well I hope you found this interesting and if you would like to know more please schedule your free demonstration today.
Interested in learning more? Check out these product videos: